Types of employment statuses and the importance of identifying an individual’s employment status
Three types of employment statuses include the worker, the employee and the self-employed. A worker is a person who fulfils daily duty requirements, hired either on a daily basis or for a fixed term to help in the production system. The worker’s contribution to the company is significant because the worker helps reduce the workload so that the organization can achieve its goals and objectives. An employee is a person who has a regular term of reference in the company, thus able to enjoy the full benefits of the employment contract. The employee contributes to the improvement of the production system without leaving a vacuum. A self-employed person is the individual carrying out his or her business without being subjected to another person’s rules. Self-employment increases specialization and the desire to succeed in advancing the quality of service offered in a company. In addition, it promotes the employment status of a person.
Three reasons can be cited for the importance of identifying an individual’s employment status. First, it helps to determine the role that the individual is supposed to play in an organization. Secondly, the status helps to determine the obligations of the employer towards the individual, and the rights of the individual. For example, only employees may present claims of unfair dismissal by an employer and the employer is liable for the actions of the employee and not the self-employed. Thirdly, determination of employment status helps an organization to determine the benefits that the individual is entitled to. For example, the remuneration of an employee is the net amount because of tax deductions. In contrast, the remuneration of a self-employed individual is the gross amount without deductions. Individuals in the three statuses enjoy different benefits and perform different roles. In addition, employers have different obligations to individuals in each of the three statuses. Employment status determines the employer-employee relationship, which determines the control that an employer has over the employee. In addition, it determines the rights that are applied in legal mediation for cases in which the employer commits labour malpractices against the employee.
The difference between fair and unfair dismissals
In case of an employee’s dismissal, the employer must give convincing reasons for the dismissal. Otherwise, it will be considered an unfair dismissal. An employer has to show the negative effect of an employee’s actions on the company in order to validate the dismissal. For example, an employer may prove that the actions of the employee resulted in a decline in productivity, the employee exhibited dangerous behaviour that affected other employees negatively, and the employee violated the company’s policies. Examples of reasons that constitute fair dismissal include redundancy, conduct, capability and contravention of the law. Redundancy occurs when an employee loses a job because of reasons such as business closure or staff downsizing, which are caused by financial constraints or reorganization. An individual may also be dismissed if his/her retention goes against the provisions of the law.
For example, if an employee loses his/her work permit due to carelessness, the dismissal is considered fair. An employee may be dismissed on grounds of conduct if he/she fails to fulfil the required standards of expected behaviour or practices. In addition, dismissal is fair if an employee is no longer able to perform his/her tasks due to factors such as poor health and misconduct. Reasons for unfair dismissal include pregnancy, religious or political opinions, race or sexual orientation and procedural irregularities. Dismissal is unfair if an employee is dismissed because of giving their religious or political opinions, or because of their gender or race. In addition, dismissal is unfair if it is related to pregnancy issues such as breastfeeding. Employers should strictly adhere to the ACAS Code of Practice to ensure that the dismissal of any employee is fair. Unfair dismissal results if the employer fails to follow the ACAS Code of Conduct. Since all employees have a right to fair treatment, they can appeal if they consider their dismissal unfair.
The importance of exit interviews with both parties
Exit interviews are beneficial to employers and employees. They are conducted when an employee exits a company, be it because of dismissal or resignation. Exit interviews help employers to understand the reasons for an employee’s exit, and his/her experience with the working environment of the company. The employer can gather useful information on the most efficient programs in the company and the effect of policies on productivity and efficiency. They help employers understand the employees’ perceptions of the company’s working conditions, management, benefit and reward schemes, remuneration, and policies. Exit interviews that are conducted well help employers to solve issues that may result in lawsuits. Exit interviews can provide employers with honest feedback that they can use to make significant changes in the company. For employees, exit interviews help to understand the reasons for their exit in cases of dismissal and aids in the evaluation of the quality of their skills and qualifications. In addition, they help employees resolve any conflicts or disagreements with the employer that may result in lawsuits.